CMC Markets

Company Background

The CMC Markets review is dedicated to a Forex broker that is one of the oldest in the industry. The company welcomed its first clients in 1989. Over its 35+ years of operation, it has gathered more than 1,000,000 traders, provides services almost worldwide, and has physical offices in 12 countries. The group is listed on the London Stock Exchange, and its shares, under the ticker LSE, are part of the FTSE 250 index.

The companies within the group are officially registered and licensed by financial regulators in all countries where they operate. These include reputable authorities such as the UK’s FCA, Australia’s ASIC, and Germany’s BaFin. Regulatory requirements are strictly followed, including client protection measures. For example, in the UK, the broker participates in the FSCS, which guarantees traders’ deposits up to £85,000.

The broker demonstrates stable financial performance. In the first half of 2024 alone, operating income grew by 15%, reaching £332 million. These capital volumes allow the group to act as the sole counterparty in client transactions without involving other liquidity providers.

Overview of Services and Trading Terms

CMC Markets offers traders over 12,000 trading instruments, including:

• More than 300 currency pairs.
• 90+ commodities.
• Stock market assets (11,000+ shares, 40+ treasuries, and 70 indices).
• Nearly 20 cryptocurrencies.

Additionally, clients of some group companies can engage in more than just traditional CFD trading. For instance, in the UK, traders can use Spread Betting, while in Australia, CMC Markets acts as a stockbroker, enabling investments in shares and ETFs (with over 45,000 options). For German traders, a product called Dynamic Portfolio Swap is available.

All CFD trades are executed from a single account, with no mandatory minimum deposit. The balance must be sufficient to open a margin position, so CMC Markets recommends an initial deposit of at least $100 in their FAQ.

Leverage is capped by regulatory requirements. For clients in the UK, Europe, and Asia (serviced by the Australian branch), leverage is 1:30 for currency pairs, 1:20 for commodities, and 1:5 for stock market assets. Professional traders can access higher leverage, up to 1:200.

CMC Markets’ trading costs are not definitively higher or lower compared to other licensed brokers. For example, spreads start from 0.5 pips for currency pairs, which is competitive. However, the broker charges substantial commissions for certain trades, such as CFDs on stocks: 0.1% of the transaction amount for UK stock market products (with a minimum of £9) and $0.02 per unit for US markets (with a minimum of $10).

The broker offers trading via its proprietary web terminal or MetaTrader 4. The in-house online software includes useful tools like market sentiment analysis and a price pattern scanner. The platform has won multiple awards, with the latest in 2023.

Referral and Bonus Schemes

Due to its regulation by respected authorities, the broker does not offer bonus programs or promotional campaigns for clients. Furthermore, there is no information about a referral program, as CMC Markets focuses on client protection rather than aggressive user acquisition.